There’s an overabundance of public relations agencies and despite their high costs — or maybe because of them — they’re not trusted. If you do hire one, you’ll get no guarantees.
There are 29 million businesses in the U.S., but fewer than one percent are represented by PR agencies.
“When you come from the agency world, you know where inefficiencies, mistrust, and disconnects with the non-PR world come from,” said Matthew Bird in an interview with Small Business Trends. Bird is a digital media industry veteran who intends to shake up the industry he worked most of his life in.
In contrast to PR, large retailers are an example of a trusted sector. People gravitate to stores with buyer-friendly return policies and prices, such as 1-800-FLOWERS.
Consumers have certain expectations when they buy from chains and franchises, thanks to standardization in quality control and sourced products, among other things.
With this in mind, Bird wants America to get familiar with a concept he calls “fractional PR” and a new franchise model. His new company 1-800-PublicRelations Inc. allows small and medium sized businesses to get the highest level of PR service (“Tier 1”, in industry parlance), but on an a la carte basis. Businesses getting a la carte services from the franchise would get “what they request, nothing more, nothing less, and everybody’s happy,” he added.
What’s Different Compared to PR Agencies?
In old PR models, clients could burn through retainers quickly and without much to show for it. In the franchise model, if services aren’t needed, loss of investment is a non-issue. Clients only pay for the services they use.
“The majority of businesses want this type of transaction-based, low-risk model,” Bird added. In 2014, their first year of business, more than 290 companies used 1-800-PublicRelations, Inc.
The company is using cloud-based tech to parse and sort PR teams and coordinate efficiency and revenue sharing. One benefit of the franchise is that if a franchisee feels under-equipped to execute on a specific deliverable, he or she can reach out and revenue share with other franchisees, working together as one company to honor a client request which might have been beyond the scope of just one.
“When you see an industry about to change, it’s because a precipice has been reached,” Bird said “A lot of companies are frustrated with PR and IR agencies because they’re not getting the value they were expecting.”
What’s PR Good For, Anyway?
PR agencies operate on a few basic foundations. On one side, there’s research, consulting, strategic messaging and branding. Many agencies are strong on these, but then there’s an execution side, which many agencies aren’t great at.
Smaller agencies, often called “PR boutiques”, are typically started by ex-employees of larger firms striking out on their own, but with the support systems, infrastructure and other aspects common in a large agency go away, making boutique or solo PR execution a nightmare in many cases.
Buying new technologies and learning special cloud functions are examples of challenges Bird’s franchisees (regardless of tier) won’t need to spend time or energy on, because the corporate side would provide continuity and stability on the backend. This allows the franchisees to focus on account management and fulfilling customer requests, such as media bookings and content development.
Is This the Future of Small Business Public Relations?
There are big players in the PR world today, but lately, even they’ve been questioning what their future is going to look like. Trends are changing and there’s a growing need to serve small businesses, and to gain their trust for the long haul.
Boutique PR companies by themselves haven’t been the solution. Many boutiques and big agency initiatives offer isolated strengths and tout them as unique selling propositions. But isolated strengths are not cohesive solutions, even if tech-based. One ironic pain point is that there’s a wealth of technology to execute social media and content marketing plans, yet for PR’s workflow, there’s no cohesive glue or protocol to leverage it all.
“When you have a lot of technology, you need a fleet of people to manage it too,” Bird said. “Our idea is to streamline what’s important and what’s not important, and to consolidate traditional and digital pieces of PR in one turnkey solution. Everyone wins.”
Image: Matthew Bird/Facebook
What a great article, thank you! Much appreciated Alex. Matt
Great article, thank you. Matt
PR is still important for big companies. Sure, it is not much of a necessity for some small businesses. but it is important for public companies.
Yes, crisis communications planning and real-time “damage control” are needed in controversial matters like the U.S. healthcare system, fracking, etc. Hearing ‘small business’ and ‘controversial’ together is uncommon, thank God. However, publicity and quality content are some of their needs.
Thanks for the info here.
I’m confused though: Is Bird only using the “word” franchise-or is this a franchise?
The Franchise King®
Hi Joel – yes we are franchising, however in the middle of rolling up a few firms right now and will be launching the partner / franchise platform next quarter. The core operating system should be live for agencies to access in beta mode by June 15th. That means, for a time agencies can get access to our media calendars of 1,400 newspapers, TV and Radio networks for editorial placement pitches as well as take advantage of our volume discounts on news distribution, web services, creative, and lead referrals for companies looking for full agency representation in each agencies territory. If you like feel free to shoot me an email and we can add you to our update list. Matt.email@example.com
Thanks for that update, and best of luck!
The Franchise King®
Fascinating how the PR landscape is changing. Have you read Stefan Engeseth’s book,
The Fall of PR & the Rise of Advertising?
Hi Martin, that name doesn’t ring a bell.thank you for the suggestion. one thing about PR is that if you ask the public, they’ll tell you PR is not really for selling anything –and for that reason its future is brightest compared to advertising. because in the age of social, I feel 95% of the time we don’t want to be sold to… we want information or entertainment or things that will expand our personal and professional minds/worlds. “Push” advertising is the field that stands to lose the most in the social age, I think. people got sick of it a long time ago
Thanks for this info! My firm, Zable Fisher Public Relations, has been offering a la carte P.R. services, including pay for performance, for years (we’ve been written up in the Wall Street Journal for it). But I have to give credit where it’s due – Bird has packaged the idea well.
Hi Margie, that’s good to hear. Thank you for sharing. I’m interested to see if any upheaval follows, because feathers can get ruffled. It’s not that I like drama, but during disruption, feathers are bound to get ruffled as truth comes out and everyone becomes witnesses to businesses voting with their dollars.
Margie – thank you for the kind words.
i would like to chat with you, part of our program is partnering with agency like yourself
firstname.lastname@example.org or call me at 646.401.4499
It’s great to see somebody else innovating in the PR and publicity space – providing entrepreneurs with an alternative to the retainer model.
Matt, we should talk.